Kristalina Georgieva: India Can Lead Global Growth with Deeper Trade Links

India is a bright spot in a fragmented global economy, but it must further deepen trade ties. International Monetary Fund (IMF) MD Kristalina Georgieva said that India remains one of the strongest pillars of global growth, even as the world economy becomes more unpredictable amid rising tariffs, uneven expansion, and the rapid development of artificial intelligence (AI).

At an IMF press conference, Georgieva stated that India is one of the fastest-growing economies and makes a significant contribution to global growth. According to her, the country can benefit from closer trade integration. India can aim for a higher level of trade integration with its own partners. India still maintains some barriers to trade.

The IMF Managing Director highlighted the changing global trade patterns resulting from recent tariff measures adopted by major economies. Georgieva said, "This is a significant shift. The world's largest economy has chosen to use tariffs as a tool in its relations with partners. The rest of the world has not yet followed suit. Of the IMF's 191 members, we have seen only three countries—the United States, China, and Canada—moving more stringently on tariffs."

The IMF chief said, "The world economy is currently stuck at a growth rate of 3 percent. AI could unleash the next wave of productivity growth. AI will contribute between 0.1 and 0.8 percent to growth. Achieving that growth from AI will be very important for the world."